BEIJING: Chicago corn and soybeans futures gained on Wednesday, recouping some overnight losses after the U.S. Department of Agriculture (USDA) projected end-of-season supplies above market expectations.

Wheat futures also edged higher as traders shifted focus to unfavourable weather conditions in Europe and the Black Sea region.

 

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) gained 0.31% to $4.85-6/8 a bushel by 0202 GMT after dropping 1.53% on Tuesday.

* The Chicago soybean contract added 0.19% to $10.46, while wheat rose 0.13% to $5.78 a bushel.

* In its monthly report, the USDA projected U.S. corn and soybean end-of-season supplies above market expectations, but lowered its wheat supply outlook due to adverse weather in Europe and the Black Sea region.

* The USDA also cut its estimates for Argentina's corn and soybean production after hot and dry weather hurt crops.

* Global soybeans supplies is still expected to be large due to a bumper crop in top producer Brazil.

* Agribusiness consultancies in Brazil diverged on the size of the country's 2024-25 soybean crop. While AgResource Brasil raised its forecast to a record 172.28 million tons, Patria AgroNegocios trimmed its outlook to 165.87 million tons.

* The USDA lowered wheat's global ending stocks estimates to 257.56 million bushels from 258.82 million bushels in January.

* Meanwhile, the wheat market was supported by reduced shipments from Russia, where export quotas have been set from February 15 to June 30.

* South Korean flour mill CJ CheilJedang bought about 30,000 tonnes of U.S.-origin milling wheat on Tuesday, while the Feed Leaders' Committee tendered for 50,000-65,000 tonnes of animal feed wheat, European traders said.

* Commodity funds net sold Chicago Board of Trade corn, soybean, soymeal and wheat futures contracts on Tuesday, traders said, adding that the funds net bought soyoil futures contracts.

 

MARKET NEWS

* A gauge of global stocks erased earlier declines to trade flat, while U.S. Treasury yields advanced on Tuesday, as investors assessed the latest U.S. tariff salvo and Federal Reserve Chair Jerome Powell signalled a patient path for rate cuts. DATA/EVENTS (GMT)

1330 US Core CPI MM, SA, Core CPI YY, NSA Jan

1330 US CPI MM, SA, CPI YY, NSA Jan

1330 US CPI Wage Earner Jan

1530 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 7 Feb, w/e (Reporting by Ella Cao and Mei Mei Chu; Editing by Sumana Nandy)